2 Information Systems in the Enterprise - Main Web

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TABLE 2-1 according to predefined criteria. All that must be determined is whether the customer meets the criteria. Figure 2-3 depicts a payroll TPS, which is a typical accounting transaction processing system found in most firms. A payroll system keeps track of the money paid to employees. The master file is composed of discrete pieces of information (such as a name, address, or employee number) called data elements. Data are keyed into the system, updating the data elements. The elements on the master file are combined in different ways to create reports of interest to management and government agencies and to send paychecks to employees. These TPS can generate other report combinations of existing data elements. Other typical TPS applications are identified in Figure 2-4. The figure shows that there are five functional categories of TPS: sales/marketing, manufacturing/production, finance/ Chapter 2 ❙ INFORMATION SYSTEMS IN THE ENTERPRISE 7 Characteristics of Information Processing Systems Type of System Information Inputs Processing Information Outputs Users ESS DSS MIS KWS Office systems TPS Aggregate data; external, internal Low-volume data or massive databases optimized for data analysis; analytic models and data analysis tools Summary transaction data; highvolume data; simple models Design specifications; knowledge base Documents; schedules Transactions; events Employee data (various departments) Payroll master file Data elements in payroll master file Employee Number Name Address Department Occupation Pay rate Vacation time Gross pay Earnings (year to date) WithholdingsFederal income tax State tax FICA Other Payroll system On-line queries: earnings Figure 2-3 A symbolic representation for a payroll TPS. Graphics; simulations; interactive Interactive; simulations; analysis Routine reports; simple models; low-level analysis Modeling; simulations Document management; scheduling; communication Sorting; listing; merging; updating Projections; responses to queries Special reports; decision analyses; responses to queries Summary and exception reports Models; graphics Documents; schedules; mail Detailed reports; lists; summaries To general ledger: wages and salaries Management reports Government documents Employee checks Employee Employee Gross Payroll Federal State FICA number name pay tax tax 46848 Stoker, K. 2000.00 400.00 50.00 140.00 Senior managers Professionals; staff managers Middle managers Professionals; technical staff Clerical workers Operations personnel; supervisors Earnings (year to date) 6000.00
8 Part I ❙ ORGANIZATIONS, MANAGEMENT, AND THE NETWORKED ENTERPRISE Major functions of system Major application systems Sales/ marketing systems Manufacturing/ production systems Sales management Scheduling Market research Purchasing Promotion Shipping/receiving Pricing Engineering New products Operations Sales order information system Market research system Sales commission system TYPE OF TPS SYSTEM Finance/ accounting systems Human resources systems Figure 2-4 Typical applications of TPS. There are five functional categories of TPS: sales/marketing, manufacturing/production, finance/accounting, human resources, and other types of systems specific to a particular industry.Within each of these major functions are subfunctions. For each of these subfunctions (e.g., sales management) there is a major application system. knowledge work systems (KWS) Information systems that aid knowledge workers in the creation and integration of new knowledge in the organization. office systems Computer systems, such as word processing, electronic mail systems, and scheduling systems, that are designed to increase the productivity of data workers in the office. Machine control systems Purchase order systems Quality control systems Other types (e.g., university) Budgeting Personnel records Admissions General ledger Benefits Grade records Billing Compensation Course records Cost accounting Labor relations Training Alumni General ledger Payroll Registration system Accounts receivable/payable Funds management systems Employee records Student transcript system Benefit systems Curriculum class control systems Career path systems Alumni benefactor system accounting, human resources, and other types of TPS that are unique to a particular industry. The UPS package tracking system described in Chapter 1 is an example of a manufacturing TPS. UPS sells package delivery services; the system keeps track of all of its package shipment transactions. Transaction processing systems are often so central to a business that TPS failure for a few hours can spell a firm’s demise and perhaps other firms linked to it. Imagine what would happen to UPS if its package tracking system were not working! What would the airlines do without their computerized reservation systems? Managers need TPS to monitor the status of internal operations and the firm’s relations with the external environment. TPS are also major producers of information for the other types of systems. (For example, the payroll system illustrated in Figure 2-4, along with other accounting TPS, supplies data to the company’s general ledger system, which is responsible for maintaining records of the firm’s income and expenses and for producing reports such as income statements and balance sheets.) Knowledge Work and Office Systems Knowledge work systems (KWS) and office systems serve the information needs at the knowledge level of the organization. Knowledge work systems aid knowledge workers, whereas office automation systems primarily aid data workers (although they are also used extensively by knowledge workers). In general, knowledge workers are people who hold formal university degrees and who are often members of a recognized profession, such as engineers, doctors, lawyers, and scientists. Their jobs consist primarily of creating new information and knowledge. Knowledge work systems (KWS), such as scientific or engineering design workstations, promote the creation of new knowledge and ensure that new knowledge and technical expertise are properly integrated into the business. Data workers typically have less formal, advanced educational degrees and tend to process rather than create information. They consist primarily of secretaries, accountants, filing clerks, or managers whose jobs are principally to use, manipulate, or disseminate information. Office systems are information technology applications designed to increase data workers’ productivity by supporting the coordinating and commu-
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